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-Caveat Lector-

http://www.dfw.com/mld/dfw/business/7729511.htm
http://www.reporter-news.com/abil/nw_business/article/0,1874,ABIL_7948_25826
71,00.html

Posted on Fri, Jan. 16, 2004

Despite Probe, Halliburton Gets Contract
MATT KELLEY
Associated Press

WASHINGTON - Despite a Pentagon probe into alleged overcharging for fuel
delivered to Iraq, the Army awarded Vice President Dick Cheney's former
company a contract Friday to rebuild Iraq's oil industry.

Halliburton won a competitive bid to rebuild the oil industry in southern
Iraq, a contract worth up to $1.2 billion over two years, the Army Corps of
Engineers said in a statement.

The Army gave Halliburton subsidiary KBR a no-bid contract to rebuild oil
infrastructure throughout Iraq shortly after the U.S.-led invasion of Iraq
last March. The Army opened that contract for competitive bids last fall and
split it into one for northern Iraq and one for southern Iraq.

The northern Iraq contract, worth up to $800 million, went to a joint
venture of California-based Parsons Corp. and the Australian firm Worley
Group Ltd.

Just days before the Army's award to Halliburton, Pentagon auditors asked
for an investigation into possible criminal wrongdoing involving the no-bid
KBR oil industry reconstruction contract.

Officials in the Defense Department's Office of Inspector General haven't
decided which investigators will do the work, the office said in a statement
Friday.

The Defense Contract Audit Agency last month questioned KBR's charges for
gasoline it bought in Kuwait and trucked into Iraq for the civilian market.
KBR charged more than double the price for gasoline brought in from Kuwait
than it did for gas trucked in from Turkey. Auditors said KBR may have
overcharged the Army by $61 million between May and September.

Halliburton has denied any wrongdoing and said the Army approved its
subcontract with a Kuwaiti supplier, the Altanmia Marketing Co. The Army
told auditors the high price was justified because KBR had to get fuel
deliveries going quickly to avert a fuel crisis in Iraq.

The oil contract probe will focus mainly on possible wrongdoing by
government officials, not Halliburton, a senior defense official has said.

Democrats have demanded further investigations and criticized the
Halliburton contracts as evidence of the Bush administration's rewarding its
corporate friends. Cheney ran Halliburton from 1995 until he quit in 2000 to
become Bush's running mate, and the company's executives have donated
thousands of dollars to the Bush campaign.

White House and Pentagon officials say political considerations do not
affect the Defense Department's contract decisions. Cheney, a former defense
secretary, is not involved in those decisions.

============================
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/01-16
-2004/0002091012&EDATE=
Halliburton Subsidiary Wins Follow-On Oil Contract In Iraq

    HOUSTON, Jan. 16 /PRNewswire-FirstCall/ -- Halliburton (NYSE: HAL) today
confirmed the US Army Corps of Engineers awarded KBR the contract to
continue
its operations for the Restore Iraqi Oil (RIO) program in the southern
section
of Iraq.  The contract was awarded through a full and fair competitive
bidding
process.  KBR is the engineering and construction subsidiary of Halliburton.
    "This decision is an endorsement of the courageous work being done by
Halliburton's employees in Iraq," said Dave Lesar, chairman, president and
chief executive officer, Halliburton.  "Rebuilding Iraq is one of the
largest
and most complex reconstruction undertakings of the past half century.  The
people of KBR are proud to continue to play a role in the transformation of
Iraq."
    "Of course, we believe the award of this contract validates the decision
of the Army Corps of Engineers last year.  We were chosen because we were
the
best qualified with a proven track record of the ability to perform," added
Lesar.
    Since March 2003, KBR made substantial and significant progress toward
restoring Iraq's oil production and capabilities.  KBR put into action a
contingency plan for assessing and extinguishing oil well fires in Iraq as
well as evaluating and repairing, as directed by the US government, the
country's petroleum infrastructure.
    "Our employees have had a significant and positive effect on the quality
of life for troops and the people of Iraq, and this decision confirms their
work as builders, architects, planners, security experts, geologists and
engineers.  They are working side-by-side with the military to create a
sense
of normalcy for the Iraqi people," added Lesar.  "Our employees have been
one
of the linchpins in our country's efforts to restore self-sufficiency to
Iraq.
This particular contract is key to that effort because independent oil and
fuel supplies help liberate the country."
    Halliburton is resolved to assist the Iraqi people rebuild the country's
oil infrastructure while also carrying out the important responsibility to
maintain oversight in the expenditure of funds.
    For more than 60 years, during both Democrat and Republican
administrations, Halliburton has a record of service to the defense to the
United States.  We built war ships for the Navy in World War II, and we have
supported troops in Somalia, Rwanda Haiti, the Balkans and Afghanistan.  In
the first Gulf War, we helped bring under control half the oil wells in
Kuwait.  Halliburton employees are prepared to meet the challenge regardless
of the difficulties and risks involved.
    Halliburton, founded in 1919, is one of the world's largest providers of
products and services to the petroleum and energy industries.  The company
serves its customers with a broad range of products and services through its
Energy Services and Engineering and Construction Groups.  The company's
World
Wide Web site can be accessed at http://www.halliburton.com .

SOURCE Halliburton
Web Site: http://www.halliburton.com

============================

http://framehosting.dowjonesnews.com/sample/samplestory.asp?StoryID=20040116
21120000&Take=1
16 Jan 2004 21:12 GMT
Iraq Oilfield Contracts May Be Postponed Again

Copyright C 2004, Dow Jones Newswires

HOUSTON (Dow Jones)--Despite reassurances from the Army Corps of Engineers,
it appeared likely Friday afternoon that the agency would once again
postpone awarding long-awaited contracts to restore Iraq's oilfields.

The Army Corps had previously said it would award the contracts by Jan. 17.
Given that the government doesn't typically announce contract awards over
the weekend, Army Corps officials had signaled an announcement by Friday.

Army Corps spokeswoman Carol Sanders told Dow Jones Newswires at 3 p.m. EST
(2000 GMT) that she had no information that the contract would be delayed.

But contractors, noting the lateness in the day and the keen interest, were
skeptical Friday afternoon. "I'm not going to say there's no chance, but I'm
skeptical," said one of the applicants.

There has been an unusually keen interest in the contracts because the
winners would replace Halliburton Co. (HAL), which has gotten $2.3 billion
in government work under a controversial no-bid contract.

   After first saying the Halliburton contract would be replaced by late
August,
 the Army Corps has repeatedly pushed back the deadline, a move that has
maintained
 Halliburton's exclusivity on the work. Army Corps officials have been
slowed in recent
 months because of criticism of   Halliburton's fuel imports as overpriced.
On Friday, Democratic congressmen said Pentagon reported that a probe had
been referred to the inspector general's criminal division. The Pentagon has
not returned numerous phone calls seeking comment.

-By John M. Biers, Dow Jones Newswires; 713-547-9214;

[EMAIL PROTECTED]
(END) Dow Jones Newswires

01-16-04 1612ET

============================

http://www.focus-fen.net/index.php?catid=138&newsid=27827&ch=0&datte=2004-01
-17

American Military Men Made 2 Contracts for Revival of Oil Industry in Iraq

 17 January 2004 | 01:13 | FOCUS

American military men signed two contracts
for the revival of the oil industry in Iraq.
One of the contracts, for USD 1,2 B, was given
to the Kellog Brown and Root company.

============================
http://story.news.yahoo.com/news?tmpl=story&cid=669&ncid=669&e=4&u=/usnw/200
40116/pl_usnw/u_s__army_corps_of_engineers_awards_contracts_for_repair_of_ir
aq_s_oil_infrastructure150_xml
U.S. Army Corps of Engineers Awards Contracts for Repair of Iraq's Oil
Infrastructure
To: National Desk

Contact: Ross Adkins, 501-258-0452 or 214-767-2510, or Lu Christie,
214-767-2510, both of the U.S. Army Corps of Engineers

WASHINGTON, Jan. 16 /U.S. Newswire/ -- The U.S. Army Corps of Engineers
announced today that it has awarded two contracts for future work restoring
the Iraqi oil infrastructure to pre-war production levels. The two new
contracts complete the pre-war acquisition plan to replace the
non-competitive contract with full and open competitive contracts.

Both contracts are Indefinite Delivery Indefinite Quantity (IDIQ) cost plus
award fee 24-month contracts with three one-year options. The contract for
work in the southern area of Iraq (news - web sites) was awarded to Kellogg
Brown and Root of Arlington, Virginia and the other for work in the northern
sector of the country was awarded to Parsons Iraqi Joint Venture (Parsons
with its teaming subcontractor Worley Group of Australia), Houston, Texas.
The two contracts have no geographical overlap. Each will have a minimum
value of $500,000. As amended, the maximum value for the life of the
contract for the northern oil fields will be $800 million and for the
southern oil fields will be $1.2 billion. Those amounts are contract
capacity amounts. The actual amount of the contract capacity that will be
used will depend on the requirements based on conditions on the ground at
the time and may or may not reach the contract capacity.

The competition for the two contracts was full and open in accordance with
the Federal Acquisition Regulation. This process provides for a fair and
impartial evaluation of the offerors' proposals. The contractors were
selected on the basis of best value to the government and qualifications to
do the work described in the solicitation.

The new IDIQ contracts will cover a full range of services. These include,
but are not limited to, extinguishing oil well fires; environmental
assessments and cleanup at oil sites; oil infrastructure condition
assessments; engineering design and construction necessary to restore the
infrastructure to a safe operating condition; oilfield, pipeline and
refinery maintenance; procurement and importation of fuel products;
distribution of fuel products within Iraq; technical assistance in marketing
and sale/export; and technical assistance and consulting services to the
Iraqi oil companies.

The Corps of Engineers' mission is to restore the oil production, oil
refining and gas processing capability to pre-war levels for the benefit of
the Iraqi people. The mission includes humanitarian assistance. The Corps is
providing emergency supplies of gasoline, LPG and other petroleum products
to distribution points operated by the Iraqi Ministry of Oil for use by the
Iraqi people. Exceeding their project goals, the Iraqi Ministry of Oil and
the Corps, working together, have brought crude production to over 2.2
million barrels per day with up to 1.8 million barrels being exported daily.

See website for more information:
http://www.hq.usace.army.mil/cepa/iraq/oilfires.htm.
http://www.usnewswire.com/
-0-
/C 2004 U.S. Newswire 202-347-2770/

============================
http://money.iwon.com/jsp/nw/nwdt_rt_top.jsp?cat=TOPBIZ&src=201&feed=reu&sec
tion=news&news_id=reu-n16471705-u1&date=20040116&alias=/alias/money/cm/nw
U.S. Army awards Iraq oil deals to KBR, Parsons
Friday January 16, 6:17 PM EST

(Adds details, Halliburton reaction)

By Sue Pleming

WASHINGTON, Jan 16 (Reuters) - The U.S. Army on Friday awarded $2 billion
worth of contracts to repair Iraq's oil industry to a unit of Vice President
Dick Cheney's old firm Halliburton (HAL) and U.S. construction giant
Parsons, which teamed up with Worley Group of Australia (WOR).

The two contracts, one for the northern oil fields that went to Parsons and
the other for Iraq's southern oil fields that went to Halliburton's Kellogg
Brown and Root, followed months of controversy over work done by KBR under
its first deal to rebuild the oil sector.

The Army Corps of Engineers said in a statement the two contracts would each
have a minimum value of $500,000 each and that the maximum value for the
north would be $800 million and for the south it would be $1.2 billion.

The first contract to rebuild the oil sector was handed to KBR last March on
a no-competition basis and the Corps pointed out that Friday's contracts
were awarded in "full and open competition."

"The contractors were selected on the basis of best value to the government
and qualifications to do the work described in the solicitation," the Corps
said in a statement.

Halliburton said the new contract validated all the work it had done in Iraq
under the first contract, which has given the company $2.3 billion in
business so far.

"This decision is an endorsement of the courageous work being done by
Halliburton's employees in Iraq," said Dave Lesar, chairman, president and
chief executive officer of Halliburton.

"We were chosen because we were the best qualified with a proven track
record of the ability to perform," added Lesar.

The Halliburton first Restore Iraqi Oil contract was clouded with
controversy, from allegations in a draft audit that the company overcharged
for some services to others that it got the work because of its close ties
to the White House.

The Pentagon's Inspector General was asked by military auditors this week to
look into the pricing issue.

The new work will include extinguishing oil well fires; environmental
assessments and cleanup at oil sites; oil infrastructure condition
assessments; engineering design and construction necessary to restore the
infrastructure.

"The Corps of Engineers' mission is to restore the oil production, oil
refining and gas processing capability to pre-war levels for the benefit of
the Iraqi people," the statement said.

The Corps said that crude production was now at over 2.2 million barrels per
day with up to 1.8 million barrels being exported daily.

Other known bidders for the work had included U.S. Fluor Corp. (FLR), which
had formed a joint venture with Britain's Amec Plc (AMEC) in April with an
eye to winning work rebuilding Iraq's oil industry.

C2003 Reuters Limited.
RELATED QUOTES
Symbol Last Trade Change
HAL
 27.49
 +0.64

FLR
 39.60
 +0.45

Quotes delayed up to 20 minutes.

==========================

http://news.bbc.co.uk/1/hi/world/middle_east/3405201.stm

KBR wins new US army contract
Last Updated: Friday, 16 January, 2004, 23:21 GMT

Kellogg Brown & Root (KBR) has won a new US army contract to help repair
Iraq's dilapidated oil industry.
Parsons Iraqi Joint Venture and Worley Group also will share in the $2bn
(L1.1bn; 1.6bn euros) worth of work.

The appointment is likely to raise eyebrows as KBR has been accused of
overcharging the US military for fuel.

The Pentagon is mulling whether to investigate KBR's owner, Halliburton,
over the allegations. The company has denied any wrongdoing.

North-South divide

Halliburton, whose former chief executive was US Vice President Dick Cheney,
had looked to be in the clear after an earlier inquiry.

Under the terms of the contracts, KBR will develop Iraq's southern oil
fields, while Parsons and Worley will work together in the north of the
country.


























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